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The US Rural Broadband Crisis

Ian Lamont writes "Rural US residents don't have the same kind of access to broadband services as those who live in urban or suburban areas. According to the federal government, just 17% of rural U.S. households subscribe to broadband service. But the problem is more than a conflict between Wall Street and small-town residents wanting to surf the 'Net or play Warcraft — the lack of broadband access prevents many businesses from growing and diversifying rural economies, as it's expensive or impossible to get broadband. From the article: 'Soon after moving to Gilsum, N.H. (population 811), [Kim] Rossey learned that he couldn't get broadband to support his Web programming business, TooCoolWebs. DSL wasn't available, and the local cable service provider wasn't interested in extending the cabling for its broadband service the three-tenths of a mile required to reach Rossey's house — even if he paid the full $7,000 cost. Rossey ended up signing a two-year, $450-per-month contract for a T1 line that delivers 1.44Mbit/sec. of bandwidth. He pays 10 times more than the cable provider would have charged and receives one quarter of the bandwidth.' The author also notes that larger businesses are being crimped, from a national call center to a national retailer which claims 17% of its store locations can't get broadband."

16 of 586 comments (clear)

  1. Ounce of Prevention by everphilski · · Score: 5, Insightful

    Sucks, but seriously, do a little research before you move, if your business depends on it. Just reeks of irresponsibility. (Not to say not having broadband at 100% penetration doesn't suck, but I'm not gonna cry a river cause you didn't do your research ahead of time ... )

    1. Re:Ounce of Prevention by glop · · Score: 5, Insightful

      I have moderation points at the moment and thought of rating you as a troll. But I thought better of it and will just state a few points that you seem to have missed :
        1) the guy has solved the problem by shelling some money.
        2) the money he is paying is only 100$ more than my commute costs. And I guess his house is much bigger and cheaper than anything I could find in NY. So he probably was wise to pay that price.
        3) he offered to pay all the connnection costs for the cable company and they refused.

      So, I really can relate to this guy and think he really is the good guy here.

    2. Re:Ounce of Prevention by walt-sjc · · Score: 4, Insightful

      Some of us have tried it and found that it SUCKS. Latency is 600ms AT BEST. In practice, it's worse. It's also slow, and inconsistent. It a connection of last resort. Since the guy's BUSINESS is the Internet, it's a non-option. $450/month for a T1 is a VERY reasonable and realistic price to pay for something your business depends on. As I said in another comment, that $450/month enables him to make $10K+/month (if he is competent.) Without it, he makes $0. He also gets to write off 100% of the cost, so in reality it doesn't cost quite that much. Like power, heating / cooling, space, advertising, equipment and software, it's a cost of doing business.

  2. They don't have hookers on every corner by Harmonious+Botch · · Score: 5, Insightful
    They don't have hookers either. OMG!! A hooker crisis! They probably don't have a decent symphony orchestra either. An orchestra crisis! Sorry, not meaning to flame, but this is what it means to live in rural America. You have elbow room, privacy, lots of fresh air, and cheap housing costs. In return, you do without some things.

    As population density drops outside of metropolitan areas, it's impossible for telecommunications companies or cable service providers to justify the tens to hundreds of thousands of dollars per mile it can cost to bring fiber to every rural community, let alone every home. It's easy to make a superficial comparison with other countries - particularly European - who have higher population densities. I'd like to see a study in which the figures for broadband access were weighted for density.
    1. Re:They don't have hookers on every corner by mbradshawlong · · Score: 5, Insightful

      Would you say the same if this were about phone service? How about water? Electricity? Many rural residences don't have water service either. They install their own wells with electric pumps for their water needs. My parents who live in rural Minnesota only recently received cable and broadband internet and will likely never have "town" water.
    2. Re:They don't have hookers on every corner by chill · · Score: 4, Insightful

      It's easy to make a superficial comparison with other countries - particularly European - who have higher population densities. I'd like to see a study in which the figures for broadband access were weighted for density.

      While definitions of "broadband" may vary, you may find that availability of a DSL or cable connection is on par between Western Europe and Big City America, levels are different.

      You can get 100 Mbps connection in Sweden and a few other European countries for what a 5 Mbps one costs in the U.S. Want it weighted by population density? Fine. Pick a big U.S. city -- any one. Just ignore the rural part and compare it to Europe on a country-by-country basis, including their suburban and rural parts.

      I used to think like you do, that it was population density that curtailed U.S. broadband in comparison to places like Korea and Europe. Then someone pointed out that U.S. broadband is crappy-to-mediocre in the largest U.S. cities with high population densities. What is the excuse for New York, Los Angeles, Chicago, Atlanta and Washington D.C.?

      --
      Learning HOW to think is more important than learning WHAT to think.
    3. Re:They don't have hookers on every corner by pla · · Score: 4, Insightful

      It's easy to make a superficial comparison with other countries - particularly European - who have higher population densities. I'd like to see a study in which the figures for broadband access were weighted for density.

      New England (and this article refer to NH) does have a population density, including distribution of urban-vs-rural areas, comparable to Western Europe.

      Face it, "We're number 17!". Broadband availability in the US sucks, and the mono/duopolist providers have no interest in improving coverage (quite the opposite, they've actively fought changes in the way they can report availability statistics that would paint a more accurate picture).

    4. Re:They don't have hookers on every corner by GeckoX · · Score: 4, Insightful

      I'm confused, you don't like the government mandated regulations on providing phone and electricity service as it allows monopoly entrenchment.

      But the result being that everyone has phone and electricity, and at a reasonable price.

      And the internet providers have been given government backed monopolies, but AREN'T required to provide service to everyone...but this is somehow better?

      Can you fill in the blanks please?

      These services should either be totally open to competition with no government backed monopolies, or the services should be REQUIRED to be provided to all. One or the other. Anything else is just a license to skim the barrel...which is exactly what we have right now.

      --
      No Comment.
  3. Rural == Not A City!!!! by ColdWetDog · · Score: 4, Insightful
    I'm not sure just what part of the world "rural" people don't understand, but out here in the boonies (and I live on an isolated island in Alaska - that's rural) we don't have LOTS of thinks. Kentucky Fried Chicken, Wal-Mart, traffic jams, low prices.

    We do happen to have relatively good Internet via cable (1 mb) but you can't take anything for granted. Yes, the big, evil Telcos don't want to put stuff out here because it costs a lot. And yes, they should be soundly trashed because it was already "paid" for.

    A crisis? Oh well. Caveat Emptor.

    --
    Faster! Faster! Faster would be better!
  4. Re:why should broadband be a special case? by Scarblac · · Score: 5, Insightful

    ...its a luxury not a basic utility.

    Bullshit, this is 2007, not 1997.

    --
    I believe posters are recognized by their sig. So I made one.
  5. Or maybe a dash of creativity... by mortonda · · Score: 4, Insightful

    In many rural areas, wireless broadband is making inroads. Find the nearest neighbor that *can* get cable, and set up a wireless bridge to them. If there's a few people around you, set up a good access point and resell it.

    I know, some cable plans don't like that... but on the other hand, it's not like they were planning to sell it to those folks anyway. Also, in my area, you can pay for "enterprise cable" service which is very reasonable, and they won't complain about what you run on it.

  6. NO! Do NOT say "they should move to the city" by keraneuology · · Score: 4, Insightful
    Given the extraordinary public subsidies, law exemptions and bypasses given to the telecommunication companies they need to get their butts in gear and make broadband as available as the original POTS networks. The various states are to blame as well - if they had mandated back in the 80s/90s that new subdivisions couldn't be built unless they had provided for gas, electric, water, sewer AND modern communications then we wouldn't have this problem today.

    If AT&T, Sprint, Verizon and ilk refuse to upgrade their rural networks then pull the subsidies and make them compete on their own merits. At the VERY least they would provide WiFi broadband at reasonable rates.

    --
    If the g'vt kept the data on you that google does you'd better believe you'd be calling it "doing evil"
  7. Research, yes, but by wytcld · · Score: 5, Insightful

    I live less than 20 miles from Gilsum, and about a mile from a (relatively) major regional ISP with good SDSL. I did my research before moving here. But the crisis isn't someone moving to Gilsum blindly. The crisis is that there are lots of ways that solid broadband access can give advantage to a business. Good broadband is a strong advantage for economic development. So rural areas need to find ways to develop it. It can be profitable, evidently, even for the providers. The highest DSL penetration in the country is claimed by VTel in Vermont. Meanwhile the State of Vermont is looking at ways to subsidize extending wireless access to the remotest valleys - with the Republican governor's strong support.

    The crisis is that what's good for business and economic development on the whole is often not taken care of by the incumbent carriers, who have discovered ways to make more profits elsewhere without delivering particularly good or advanced services, just by squeezing customers they already have. It's not that they couldn't make real profits in rural areas, but that they'd have to do some actual work to earn them, rather than just live off the legacy of the networks they've already built.

    --
    "with their freedom lost all virtue lose" - Milton
  8. The virtues of regulated monopolies by dpbsmith · · Score: 5, Insightful

    AT&T was founded on Theodore Vail's vision of "universal service." There were good and bad things about Ma Bell, but one good thing about it was that it united the nation with a uniform, uniformly priced, highly reliable service.

    Exactly the same thing is true of the post office. It costs the postal service more to mail a letter to Alaska than to mail it across town, but the price of the stamp is 41 cents.

    Universal service is only possible if the service provider is allowed to cross-subsidize the areas that are expensive to service with revenues from the areas that are cheap to service. Competition and the free market will always produce wildly varying prices and cream-skimming (in which the most profitable markets get service from multiple suppliers and the least profitable get no service at all).

    If the Internet is now as fundamentally important as the telephone or the postal service, then--just as with the interstate highway system, or the system of air traffic control which enables airline service to be nationwide--there will need to be national policy to that effect. Otherwise it won't happen.

  9. Not seeing the forest for the trees by btarval · · Score: 5, Insightful

    Well, yes, one always should do one's research beforehand. But that's like only seeing the tree in front of you, and missing the entire forest.

    The basic problem here, and throughout the U.S., is that the so-called "last mile" lines are tightly controlled by the local monopoly, and closed off almost completely to any competition. When you don't have competition, you have no incentive to offer better service.

    The only way we'll ever see either wider deployment, or 100 Mbs to the house in the next 10 years, is if the Telephone companies are divested of the Central Offices. That is, these are spun off into businesses which sell the lines to competing companies. Only then will you have motivation to upgrade the last mile with better services and speeds.

    What I find amusing is that there's always someone who will say "but there won't be any interest in upgrading the rural areas". They always fail to realize that there is no interest right now, and isn't any on the horizon.

    If you make this market truly competitive, then there will be interest. Now, granted the price will necessarily be higher, and that's where the main objection from people living out in the rural area comes from. But at least there will be service for a price. And that's what is needed to get the infrastructure ball rolling to deploy better solutions than just a T1 (which really looks rather pathetic these days).

    It's also amusing that America is facing internation pressure on this front (while doing nothing about it). Other countries are deploying high-speed internet (100+ Mbs), while the best we've got being rolled out is a pathetic 6 Mbps.

    Silicon Valley in particular is extremely lacking here.

    Unless this is changed, and soon, there will be a lot of other countries which are in a better position to compete than the U.S.. The next 10 years will be interesting.

    --
    The best way to predict the future is to create it. - Peter Drucker.
  10. Re:why should broadband be a special case? by walt-sjc · · Score: 5, Insightful

    I think the issue is that you are taking the term "luxury" too literally. The only things you NEED to live is food, water, and some sort of shelter.

    Modern life / business / education / etc however has added many other things to the list of "basic needs".

    Can you get by without transportation, electricity or phone? Sure. Can you participate in modern society without those items? Not effectively.

    It's perfectly reasonable to come up with strong arguments that say that broadband Internet access will soon become a "basic need" in order for our society to effectively compete in the global market. In fact, our government (despite total incompetence) has identified this need as real.